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Peter Rizun: A Bitcoin Fee Market Without A Blocksize Limit

Episode Summary

Dr. Peter Rizun joined us to discuss why a fee market in Bitcoin would exist even without a blocksize limit and his argument for Bitcoin Unlimited.

Episode Notes

With both the Bitcoin Unlimited and Segregated Witness efforts far from reaching majority support and exploding transaction fees, the debate around how to scale Bitcoin continues on. One of the key arguments against bigger blocks and Bitcoin Unlimited is that a blocksize restriction is needed to create a healthy fee market. Dr Peter Rizun has been researching the economics of transaction fees in Bitcoin extensively and joined us to discuss what dynamics affect fees and why he thinks the blocksize limit will eventually fall.

Topics covered in this episode:

• Bitcoin seen through the eyes of a physicist
• The dynamics that determine transaction fees in Bitcoin
• How orphaning risks drive the fee market economics
• The relationship between the block reward and the fee market
• Why the blocksize limit will eventually fall
• Why Peter supports Bitcoin Unlimited
• The state of discussion between Bitcoin Core and Bitcoin Unlimited

Episode links:

• Dr. Peter Rizun's talk at Scaling Bitcoin Montreal 2015
• Dr. Peter Rizun: "A Transaction Fee Market Exists Without a Block Size Limit"
• XT Nodes - Bitcoin Hashrate Distribution
• Bitco.in Forum
• Ledger - Peer-Reviewed Journal on Cryptocurrency and Blockchain

This episode is hosted by Brian Fabian Crain and Meher Roy. Show notes and listening options: epicenter.tv/172